Which of the following will tend to occur if price controls are imposed on a product?
a. persistent shortages
b. illegal markets
c. illicit channels of distribution
d. industry investment slows or stops
e. All of the above are correct.
e
You might also like to view...
Which of the following are lags that fiscal policy makers must cope with?
A) effect time lags B) recognition time lags C) action time lags D) All of the above are correct.
In Figure 17-4 above, the profit-maximizing quantity, in the absence of "menu costs," ________, with profit equal to ________
A) remains Y0, J + K B) remains Y0, H + K C) remains Y0, G + H + J + K D) falls to Y1, G + J E) falls to Y1, F + G + J
A decrease in the real interest rate outside of the United States will cause the dollar to ________ relative to other currencies and ________ net exports and real GDP
A) appreciate; increase B) appreciate; reduce C) depreciate; increase D) depreciate; reduce
The Slutsky decomposition of the effect of the real wage on a person's labor supply decision suggests that the negative income effect of such a wage change will be larger: a. the smaller is the quantity of labor supplied and the smaller is the effect of non-labor income
b. the smaller is the quantity of labor supplied and the larger is the effect of non-labor income. c. the larger is the quantity of labor supplied and the smaller is the effect of non-labor income. d. the larger is the quantity of labor supplied and the larger is the effect of non-labor income.